IBM joins the wave of layoffs in technology companies, dispensing with 3,900 workers

Bad times for the workers of the main technology companies on the planet. Companies like Microsoft, Twitter, Meta, Google, Spotify or Amazon have been announcing the layoffs of thousands of workers in recent weeks, and now another big one, IBM, has joined.

Although IBM’s annual results have exceeded analyst and company expectations, the company missed its cash target (“only” $9.3 billion instead of the expected $10 billion), and its solution has been lay off more than 3,900 employees. The vast majority of these layoffs will be related to the Watson Health Artificial Intelligence division and the Kyndryl division of the parent company.

The layoffs, which account for 1.5% of the total number of company employees, they will cost 300 million dollars in the first quarter of this year 2023. Added to the fact that investors expected even more layoffs and other cost-cutting measures, it has caused the shares to fall 2% in the pre-market.

We will have to see how the situation evolves and if the semiconductor giant continues to cut costs or wait to see if the market trends are more favourable.

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